Australia's best grassland costs a maximum of €10.000

According to purchasing supervisor Ewoud de Leeuw of Interfarms, the land price is 50-200% lower than in other popular emigration countries. De Leeuw has lived in Brisbane, Australia on the east coast of Australia, since 1981 and is a dairy farming consultant, but over the years has also built up extensive knowledge of all other sectors in Australian agriculture and horticulture. He also has his own farm.

Drought is not a problem in Tasmania
The low land price and the low regulatory burden, compared to the Netherlands, ensure that Dutch dairy farmers, arable farmers and pig farmers alike make the long crossing, although there are certainly not dozens of them per year. The growth opportunities are also seen as a major advantage, says de Leeuw. He spoke on Thursday, December 3, in a webinar organized by the Interfarms agency specialized in agricultural emigration.  

In recent years, a number of Dutch dairy farmers and arable farmers have successfully established themselves, especially on the island of Tasmania. There, an average of €7.000 per hectare is paid for agricultural land. This hilly island, furthest south from the equator, receives the most rainfall, up to 1.500 millimeters per year. De Leeuw: "The disadvantage of Tasmania is its isolation. The structure of the agricultural sector is also less large-scale than on the Australian mainland."

Large-scale dairy farm without a stable
Australian dairy farming is concentrated in a number of areas along the many thousands of kilometers of coastal region in the south-west to Brisbane in the east. Farms with a dairy herd of 200-500 cows and several hundred hectares of grassland, which are often grazed all year round, are the standard.

Milk production averages 7.000 liters per cow per year because roughage makes up a much larger part of the ration than in the Netherlands. The vast majority of companies do not have large (winter) stables, but only a milking parlour. If the land is too wet for grazing, additional feeding is carried out on the feeding paths. The milk price is almost €0,30 per litre, slightly higher than the long-term average. The dairy industry works with delivery contracts. According to De Leeuw, security of supply is not a problem. The Australian population is growing and the Asian sales market in particular offers prospects. Australia produces approximately as much milk annually as the Netherlands and is dependent on dairy exports.

In the major cities of Sydney and Melbourne in the southeastern coastal region, where 70% of Australia's 25 million inhabitants live, agricultural land costs an average of €5.000 per hectare. The deeper inland, the drier it becomes and the lower the land price. These lands are only suitable for extensive beef and grain farming, which is based on seasonal rainfall of at most a few hundred millimeters per year. But in a narrow strip along the coasts, an annual rainfall of at least 750 millimeters is quite possible, up to more than 1.000 millimeters per year. Comparable and even more than in the Netherlands.

Additional water costs
The land price is also highly dependent on irrigation options. The costs and the form of irrigation (drainage, irrigation or sprinkling) can vary considerably per region. It is also possible that water use will be restricted during periods of severe drought, such as last year.

Banks only finance the land, the milking parlor and the investments in irrigation, up to a maximum of 60% of the investment amount. Usually an interest rate of 2,5-4% is charged with a term of 10 to 15 years, but there are also wider options in terms of repayment. The price of land increases in value by an average of more than 5% every year. Machines and cows are not financed by banks. The price of cows has fluctuated considerably over the years. A few years ago, an average of €800 was paid per cow, now more than €1.500. 

Visa takes more than 2 years
Just like in the United States and Canada, a visa is required in Australia. To obtain a company visa, at least several hundred thousand euros of equity is required, as well as proof of professional competence and education. According to visa consultant Hester Freriksen from Visa4you, who also speaks in the webinar, applying for a visa takes more than 2 years and is temporary. A permanent visa is only granted 2 years after the establishment of the agricultural company, under certain conditions.